New Delhi - In a significant development, the Ministry of Panchayati Raj has issued a letter stating that all panchayats across the country will be mandated to embrace digital payments for their developmental activities and revenue collection, effective from this Independence Day onwards. This move aims to promote transparency, efficiency, and financial inclusion at the grassroots level. Moreover, these panchayats will be officially recognized as UPI-enabled, aligning with the government's vision of a cashless and digital economy.

To mark this transition, the Ministry has recommended that States and Union Territories organize special ceremonies to announce and inaugurate the UPI-compliant panchayats. These events are expected to witness the presence of distinguished dignitaries such as Chief Ministers, Members of Parliament, and Members of Legislative Assemblies. By involving such prominent figures, the government seeks to emphasize the significance of this initiative and encourage its wider adoption.

Highlighting the progress made so far, Sunil Kumar, Secretary of the Panchayati Raj Ministry, expressed that nearly 98% of the panchayats have already embraced UPI-based payments, indicating a strong commitment towards digital financial transactions at the grassroots level. This remarkable level of implementation showcases the effectiveness of previous efforts and sets a solid foundation for the upcoming mandatory transition.

The decision to make all panchayats UPI-enabled underscores the government's continued efforts to drive financial inclusion, enhance governance mechanisms, and streamline administrative processes at the local level. By leveraging digital payment systems, the panchayats will be better equipped to facilitate secure and hassle-free transactions, paving the way for improved financial management and increased efficiency in executing developmental projects.